Does corruption increase or decrease employment in firms?

Research output: Contribution to journalArticle in a journalpeer-review

12 Scopus citations


We use representative data for firms for Latin American firms and show that corruption decreases employment in firms. This result is robust to changes in specification and also consistent with the use of an instrumental variables approach. Corruption appears to negatively impact the growth and wealth in a country, not by introducing labour distortion in firms, but by keeping them small.
Original languageEnglish
Pages (from-to)361-364
Number of pages4
JournalApplied Economics Letters
Issue number5
StatePublished - 23 Mar 2016


  • Corruption
  • Latin America
  • bribes
  • employment


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